There was an introduction of the intermodal cargo transportation due to introduction of containerization from a perspective of the transportation technology. This is true because of the fact that multiple modes of transportation could be used by the shipment of the container like rail, ship or truck wherein when the modes are changed there is no handling of the freight (Belzer, 1995). The container results in connecting the manufacturer straight to the consumer by eliminating many separate handling of the cargo in the whole process. The impact of containerization is not captured sufficiently by seeing at the alterations in cost associated with the post of freight since this method resulted in a fall of the total costs of the resource of shipping the goods from manufacturer to the customer.
It was a private endeavour that containerization started by the means of shipping. Shipping lines in the initial phases were responsible for bearing the majority of the costs as most of the ports like London and New York were not willing to put in major expenditure on a fresh technology which at that time had uncertain returns (Redding, 2004). Most of the shipping lines were supposed to install their own cranes and had to function from the formerly unknown and small ports; which made the overall process very expensive at that point of time.